US Stocks: US Fed's preferred inflation gauge edges down

Lower US inflation could reduce the likelihood of aggressive rate hikes by the Fed, which typically strengthens the dollar and leads to FII outflows from emerging markets like India. A more stable global interest rate environment can improve liquidity and sentiment for Indian banking and financial stocks.

• •US Federal Reserve's preferred inflation gauge registered 2.8 percent growth over a year ago in January.
• •The inflation figure was slightly lower than expected.
• •Data was released ahead of a key central bank rate-setting meeting next week.
• •Risk flag: The Fed's actual decision next week could still be hawkish.
• •Risk flag: Geopolitical tensions (e.g., Iran war mentioned in context) could overshadow positive inflation data.